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Reliance (RS) Down 2.5% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Reliance (RS - Free Report) . Shares have lost about 2.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Reliance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Reliance’s Earnings Miss, Revenues Surpass Estimates in Q3
Reliance posted profits of $189.5 million or $3.59 per share for the third quarter of 2025, down from $199.2 million or $3.61 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $3.64 per share. It lagged the Zacks Consensus Estimate of $3.68.
The company reported net sales of $3,651.2 million, representing a year-over-year increase of approximately 6.8%. The top line beat the Zacks Consensus Estimate of $3,529.1 million.
Segment Update
Reliance reported a 6.2% year-over-year increase in shipments (thousand tons sold) to 1,615.5. The figure surpassed our estimate of 1,567.3. The average selling price per ton rose 1.1% year over year to $2,271. It was below our estimate of $2,285.
Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened versus the third quarter of 2024. The company expects demand in this sector to remain healthy through the fourth quarter of 2025, notwithstanding normal seasonal moderation, supported by ongoing investment in data centers, manufacturing facilities, and public infrastructure projects.
Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, shipbuilding, and rail sectors. Reliance anticipates that this strength will be tempered by typical seasonal softness in the fourth quarter.
Aerospace demand was stable compared with the prior year’s third quarter. Reliance expects commercial aerospace demand to stay subdued in the fourth quarter due to continued excess inventory in the supply chain, while defense and space-related activity is expected to remain strong.
Demand for automotive toll processing services improved compared to the third quarter of 2024. Reliance expects steady performance through the fourth quarter, subject to normal seasonality and ongoing uncertainty surrounding North American trade policy. The company’s toll processing operations remain agile and responsive to market fluctuations.
In the semiconductor market, demand remained soft relative to the third quarter of 2024, as elevated inventory levels across the supply chain continue to weigh on activity. Reliance expects these headwinds to persist into the fourth quarter.
Financial Position
As of Sept. 30, 2025, Reliance held $261.2 million in cash and cash equivalents, with total outstanding debt amounting to $1.39 billion. This includes $238 million borrowings under the company’s $1.5 billion revolving credit facility.
In the third quarter, Reliance generated $261.8 million in operating cash flow, which factored in a typical seasonal working capital investment. The company consistently produces strong cash flow across various market conditions, which it strategically reinvests through its opportunistic capital allocation initiatives.
Reliance repurchased 211,873 shares of its common stock during the third quarter at an average price of $287.71 per share, for a total of $60.9 million.
Outlook
Reliance expects demand in the fourth quarter to remain generally stable across its diverse end markets, though ongoing domestic and international trade policy uncertainty may influence performance. The company projects tons sold to increase 3.5% to 5.5% year over year, while declining 5% to 7% sequentially, reflecting normal seasonal trends.
The average selling price per ton is anticipated to be relatively unchanged from the third quarter of 2025. Reliance also expects its FIFO gross profit margin to be flat to slightly higher compared with the prior quarter. Based on these assumptions and typical seasonality, the company forecasts adjusted earnings per share in the range of $2.65 to $2.85 for the fourth quarter of 2025, which includes an estimated LIFO expense of $25million, or 35 cents per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -8.27% due to these changes.
VGM Scores
Currently, Reliance has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Reliance has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Reliance (RS) Down 2.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Reliance (RS - Free Report) . Shares have lost about 2.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Reliance due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Reliance’s Earnings Miss, Revenues Surpass Estimates in Q3
Reliance posted profits of $189.5 million or $3.59 per share for the third quarter of 2025, down from $199.2 million or $3.61 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $3.64 per share. It lagged the Zacks Consensus Estimate of $3.68.
The company reported net sales of $3,651.2 million, representing a year-over-year increase of approximately 6.8%. The top line beat the Zacks Consensus Estimate of $3,529.1 million.
Segment Update
Reliance reported a 6.2% year-over-year increase in shipments (thousand tons sold) to 1,615.5. The figure surpassed our estimate of 1,567.3. The average selling price per ton rose 1.1% year over year to $2,271. It was below our estimate of $2,285.
Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened versus the third quarter of 2024. The company expects demand in this sector to remain healthy through the fourth quarter of 2025, notwithstanding normal seasonal moderation, supported by ongoing investment in data centers, manufacturing facilities, and public infrastructure projects.
Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, shipbuilding, and rail sectors. Reliance anticipates that this strength will be tempered by typical seasonal softness in the fourth quarter.
Aerospace demand was stable compared with the prior year’s third quarter. Reliance expects commercial aerospace demand to stay subdued in the fourth quarter due to continued excess inventory in the supply chain, while defense and space-related activity is expected to remain strong.
Demand for automotive toll processing services improved compared to the third quarter of 2024. Reliance expects steady performance through the fourth quarter, subject to normal seasonality and ongoing uncertainty surrounding North American trade policy. The company’s toll processing operations remain agile and responsive to market fluctuations.
In the semiconductor market, demand remained soft relative to the third quarter of 2024, as elevated inventory levels across the supply chain continue to weigh on activity. Reliance expects these headwinds to persist into the fourth quarter.
Financial Position
As of Sept. 30, 2025, Reliance held $261.2 million in cash and cash equivalents, with total outstanding debt amounting to $1.39 billion. This includes $238 million borrowings under the company’s $1.5 billion revolving credit facility.
In the third quarter, Reliance generated $261.8 million in operating cash flow, which factored in a typical seasonal working capital investment. The company consistently produces strong cash flow across various market conditions, which it strategically reinvests through its opportunistic capital allocation initiatives.
Reliance repurchased 211,873 shares of its common stock during the third quarter at an average price of $287.71 per share, for a total of $60.9 million.
Outlook
Reliance expects demand in the fourth quarter to remain generally stable across its diverse end markets, though ongoing domestic and international trade policy uncertainty may influence performance. The company projects tons sold to increase 3.5% to 5.5% year over year, while declining 5% to 7% sequentially, reflecting normal seasonal trends.
The average selling price per ton is anticipated to be relatively unchanged from the third quarter of 2025. Reliance also expects its FIFO gross profit margin to be flat to slightly higher compared with the prior quarter. Based on these assumptions and typical seasonality, the company forecasts adjusted earnings per share in the range of $2.65 to $2.85 for the fourth quarter of 2025, which includes an estimated LIFO expense of $25million, or 35 cents per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -8.27% due to these changes.
VGM Scores
Currently, Reliance has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Reliance has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.